Sonoma County cuts cannabis tax
The County of Sonoma Board of Supervisors has agreed to reduce cannabis cultivation tax rates by 45 percent for the 2021-22 fiscal year.
“We were putting people out of business with our policy, so this is the right thing to do,” said District 4 Supervisor James Gore, board chair. The official vote will come April 5. The reduced rates will be retroactive to July 1, 2021, and expire June 30, 2022.
Growers had pushed hard for the tax break, arguing the rates posed an unfair burden and were stifling the industry. Opponents dubbed any break a “tax holiday,” and said growers were looking for relief from an unsustainable business model.
County tax revenue collected in fiscal year 2020-2021 from 183 permitted cannabis operators has totaled $3,634,230, compared to $2 million in estimated annual operating costs.
“The reduced cultivation tax rates are needed to account for changes in the market and our Board’s policy direction,” Gore said.
The Board also directed county staff to review the the transitioning to a gross receipt tax structure from the square-footage tax now in place. The goal is to make that switch by July 1, 2023.
“We’re committed to getting this issue right for Sonoma County, and that means continuing to work between neighborhoods and industry advocates, learning from other counties, and finding local solutions that are fair and sustainable for both communities and the environment.”
The revenue surplus in the county cannabis program will support operational costs for two years, Gore said.
Based on public feedback related to the state tax burden on the cannabis industry, the Board committed to communicating their support for state cannabis tax reform, as well as their support for SB 1074, which would discontinue the state cannabis cultivation tax and increase the state cannabis excise tax.
The Board predicated its support for both efforts on the state’s ability to maintain state tax revenue funding for children’s programs.
Separate from the tax discussion, the Board of Supervisors also approved a resolution of intention to adopt a cannabis program framework based on 16 guiding tenets designed to inform the preparation of General Plan amendments and the Environmental Impact Report required to update the Cannabis Land Use Ordinance and related regulations.
On June 8, 2021, the Board directed staff to complete a comprehensive update of the cannabis program based on previous and ongoing community input. To date, there have been eight public workshops, 12 small group outreach sessions and a countywide survey.
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‘We were putting people out of business with our policy, so this is the right thing to do,’ said District 4 Supervisor James Gore, board chair.”
This is a good thing, it gives Sonoma County cultivators some relief and can only help the entire supply chain.
Side note: I found this article posted to the Facebook Springs Community Group and thanks to the Sonoma Valley Sun for publishing it without plastering a photo of Erich Pearson over the top of it like the Argus/Courier did.
It is extremely aggravating to see Erich Pearson connected with cannabis in any way, because his support for cultivation is really just self-serving. Much of what appears on his shelves is grown by him, all the better for him and his business, while he works to choke off any competition in Sonoma and his lobbyist Amy Jenkins writes legislation that could deny medical cannabis deliveries.
Where is the line?? When is enough, enough??